CPS Technologies Corporation

AI-generated fair value estimate for this company.

Method: 10-year revenue-ramp unlevered FCF DCF: $32.35M TTM revenue base growing 20%/15%/12%/10%/8%/6%/6%/5%/5%/5% annually; FCF margin ramping from 2% (year 1, near current breakeven) to a 12% steady-state margin by year 6 (consistent with a specialty ceramics/metal-matrix materials maker scaling into defense and AI-infrastructure demand); 11% discount rate; 3% terminal growth; assumed no material net debt (small, historically low-leverage specialty manufacturer); 19.39M shares outstanding.

Reasoning: CPS Technologies is a small, currently near-breakeven specialty-materials maker with a recently signed defense contract and a new facility expansion, so a ramp DCF that models margin expansion as revenue scales is more appropriate than either its roughly breakeven current earnings or an unproven high-margin assumption.